Critical Comparison: Shopify (NASDAQ:SHOP) vs. Nebius Group (NASDAQ:NBIS)

Shopify (NASDAQ:SHOP) and Nebius Group (NASDAQ:NBIS) are both large-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Insider and Institutional Ownership

69.3% of Shopify shares are held by institutional investors. Comparatively, 21.9% of Nebius Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Shopify and Nebius Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shopify	15.01%	14.03%	12.34%
Nebius Group	4.55%	-6.03%	-2.24%

Earnings and Valuation

This table compares Shopify and Nebius Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$11.56 billion	16.57	$1.23 billion	$1.64	90.74
Nebius Group	$1.36 billion	24.17	$82.50 million	($0.03)	-4,314.73

Shopify has higher revenue and earnings than Nebius Group. Nebius Group is trading at a lower price-to-earnings ratio than Shopify, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Shopify has a beta of 2.65, indicating that its share price is 165% more volatile than the S&P 500. Comparatively, Nebius Group has a beta of 4.63, indicating that its share price is 363% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Shopify and Nebius Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0	10	38	1	2.82
Nebius Group	2	4	12	4	2.82

Shopify currently has a consensus target price of $178.82, suggesting a potential upside of 20.16%. Nebius Group has a consensus target price of $239.56, suggesting a potential upside of 85.07%. Given Nebius Group’s stronger consensus rating and higher possible upside, analysts plainly believe Nebius Group is more favorable than Shopify.

Summary

Shopify beats Nebius Group on 9 of the 14 factors compared between the two stocks.

About Shopify

Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company’s platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing. It also sells custom themes and apps, and registration of domain names; and merchant solutions, which include accepting payments, shipping, and securing working capital. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is headquartered in Ottawa, Canada.

About Nebius Group

Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company’s services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability. It also offers Avride, an autonomous driving solution which targets ride-hailing, logistics, e-commerce, and food/grocery delivery as application domains, as well as focuses on autonomous vehicles and delivery robots; and TripleTen, an EdTech service that prepares specialists for STEM roles, and equipping them with essential technology skills. The company was formerly known as Yandex N.V. and changed its name to Nebius Group N.V. in August 2024. Nebius Group N.V. was founded in 1989 and is based in Schiphol, the Netherlands.